April PP outlook gauged in Europe amid higher c3 and mediocre demand
Source: ChemOrbis Price Wizard
Most players have bullish expectations for next month as maintenance shutdowns at crackers will peak in April-May. However, some players who believe that producers enjoyed high margins amid lower naphtha and crude oil prices think that there may not be significant increases in the contracts next month. “As for April, we heard that increases of €50/ton may emerge in propylene contracts,” said a distributor.
Meanwhile, downstream demand is not satisfactory, according to some players, as buyers are mostly sidelined while waiting for the propylene contracts.
Buyers are lamenting about low margins as they failed to pass the increases onto their end products. “We are focused on running down our inventories as our end product demand has recently slowed down and we only buy fresh material in small amounts,” added buyer.
An Italian buyer commented, “We received a Korean homo PP offer with late April delivery at €1240/ton DDP through a reseller, but we are planning to negotiate for a discount as the seller seems available for slight discounts. Supply is not tight, except for some copolymers as we faced no problems in securing material this month. If demand remains stagnant in the first part of April, sellers may decrease their prices in order to achieve better sales.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Has the bear market for Asian PVC almost run its course?
- Demand outlook for crude oil dims amid China worries
- Asian styrene prices rebound from almost two-year lows
- Turkey’s PE market on brink of new drops for December
- Signs of optimism in China PP and PE markets, but caution remains
- Egypt’s import PP, PE markets flat but domestic prices turn upwards in Nov
- PVC downturn enters 7th month, prices still far from pre-pandemic levels in Europe
- Aggressive US PE offers make a scene across global markets in Q4 after a hiatus of 2 years
- SEA cracker outages and lack of deep-sea cargoes underpin olefin prices in Asia
- US origin hammers import PVC prices into Asia